Legal & General Investments has launched the UK Equity Income Fund to be managed by Richard Black.

The fund will aim to provide capital growth in the longer term and will target income in excess of the FTSE All-Share index yield.

The fund will be able to use a covered call strategy, according to fund manager Black, increasing the income potential of stocks with strong dividend yields.

Frank McGarry, sales director at Legal & General Investments, 'Under the leadership of Robert Churchlow, our UK team has built an enviable track record in equity fund management.

'The addition of the UK Equity Income Fund to the range provides investors with a fund that can fully capitalise on opportunities as they emerge.'

Initial charge for investors is up to 5 per cent and the annual management charge is 1.5 per cent, it has a minimum investment of £500.

Investment in the fund will also be available through all adviser platforms as a unit trust or in an individual savings account.